Drawing from over 25 years of expertise in wealth advisory and financial services, Dick Pfister, CAIA®, the CEO and Founder of AlphaCore Wealth Advisory, emerges as a pioneer in the field of alternative investments. The Money Tree podcast recently interviewed Dick to dissect the changing portfolio strategy while examining the intriguing area of alternative investments. The discussion between host Kirk Chisholm, Dick Pfister and financial advisors Barbara Friedberg and Phil Weiss centers on understanding and navigating the landscape of alternative investments, exploring their nuances, risks and potential rewards.
Key points from the discussion include:
- Introduction to Alternative Investments: The episode begins with an introduction from Dick Pfister to alternative investments, emphasizing the need for diversification beyond traditional stocks and bonds.
- Current Market Dynamics: The panel highlights the evolving market dynamics, especially the impact of interest rates and inflation in the last 24 months, challenging the traditional 60-40 portfolio approach.
- Diversification and Non-Correlation: Barbara Friedberg emphasizes the importance of alternatives in providing non-correlated returns, especially during market turbulence, citing the unusual events of 2022, when both stocks and bonds declined simultaneously.
- Transparency and Due Diligence: Phil Weiss highlights the challenge of transparency in alternative investments, stressing the importance of understanding the strategy, the manager’s background and the potential risk of negative alpha.
- Finding and Researching Alternatives: The episode offers insights into finding and researching alternative investments. For DIY investors, mutual funds, ETFs and various online platforms are options, and choosing professionals experienced in handling alternative investments is vital for those seeking advisors.
Throughout the episode, the importance of understanding various alternative assets, such as real estate, private equity and startups, is stressed while cautioning investors about potential downside risks and the importance of due diligence. The discussion encourages listeners to explore alternatives cautiously, recognizing their potential benefits in achieving non-correlated returns amid changing market dynamics.
Click here to listen to the entire Money Tree Investing podcast. If you are interested in learning more about navigating the landscape of alternative investments, exploring their nuances, risks and potential rewards, please do not hesitate to contact us.